Trader's Daily Notebook: It's Too Early to Put on the Bear Suit

Wednesday's decline in the SPDR S&P 500 Trust (SPY) and PowerShares QQQ Trust (QQQ) wasn't atrocious at between 0.4% and 0.44%, but small-caps gave up all their gains from Tuesday and essentially finished at session lows. In Wednesday's Trader's Daily Notebook, we discussed the idea of not placing much importance (or faith) on Tuesday's bullish outcome in the iShares Russell 2000 ETF (IWM) , and that guesstimate appears to have been well-timed. 

While we're discussing the IWM, let's remember we're primarily concerned with how traders react to a trade above $138 to $139, or beneath $133. So while Wednesday's decline may have been fantastic for those who faded Tuesday's rally (or got short at Wednesday's open), I believe it's still a bit too early to slide fully into our bear suits. And as a reminder, that 200-day simple moving average (SMA) is moving higher in a hurry, and sits a mere 3.25% beneath our $133 channel floor. ...469 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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